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What is the adjusted net income for 2019?

What is the adjusted net income for 2019?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the adjusted net income for 2019?

For three years Chona's Merchandise failed to recognize accruals, prepayments and other transactions in its accounts. Reported net income and a listing of the errors appear below: 2019 2018 1,200,000 2020 (100,000) Reported Net Income (Loss) a. Failed to record accrued expenses 20,000 48,000 b. Failed to record accrued salaries 13,000 C. 12,000 15,000 Understated depreciation expense Overstated ending inventories d. 36,000 e. 40,000 Failed to record purchase on account; merchandise properly included in ending inventory f. 3,000 4,000 Failed to recognize unused supplies at the end of the accounting period g. 60,000 Failed to recognize gain on sale of land; Land credited for amount of proceeds. 9,000 Failed to recognize unearned revenue at end of accounting period. h. 400,000 25,000 18,000 15,000 28,000 5,000
Transcribed Image Text:For three years Chona's Merchandise failed to recognize accruals, prepayments and other transactions in its accounts. Reported net income and a listing of the errors appear below: 2019 2018 1,200,000 2020 (100,000) Reported Net Income (Loss) a. Failed to record accrued expenses 20,000 48,000 b. Failed to record accrued salaries 13,000 C. 12,000 15,000 Understated depreciation expense Overstated ending inventories d. 36,000 e. 40,000 Failed to record purchase on account; merchandise properly included in ending inventory f. 3,000 4,000 Failed to recognize unused supplies at the end of the accounting period g. 60,000 Failed to recognize gain on sale of land; Land credited for amount of proceeds. 9,000 Failed to recognize unearned revenue at end of accounting period. h. 400,000 25,000 18,000 15,000 28,000 5,000
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